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Case Code: LDEN118
Case Length: 13 Pages 
Period: 2014-2016    
Pub Date: 2017
Teaching Note: Available
Price: Rs.500
Organization : Otsuka Kagu Ltd.
Industry : Retail; Furniture and Furnishings
Countries : Japan 
Themes: Family Business Management  
/Conflict Management
/Succession Planning
Case Studies  
Business Strategy
Marketing
Finance
Human Resource Management
IT and Systems
Operations
Economics
Leadership & Entrepreneurship

Conflicting Business Approaches of Two Generations: The Otsuka Family Showdown

 
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INTRODUCTION

 
At the general shareholders’ meeting of Japan’s renowned and oldest furniture retail chain, Otsuka Kagu Ltd. (OKL), on March 27, 2015, there was a sense of anticipation and anxiety. The assembly hall was crowded with nearly 200 shareholders turning up for the meeting – almost ten times more than the previous year. Everyone was waiting to know the fate of the company. A series of news reports about OKL in the local newspaper and in the media in recent times had left the shareholders uneasy. The meeting was all set for a face-off between the 71-year-old Katsuhisa Otsuka (Katsuhisa), Founder and Chairman of OKL, and his 47-year-old daughter and President of the company, Kumiko Otsuka (Kumiko). The shareholders had assembled to decide who should be given control of the troubled company and to select new board members. At the meeting, the father accused his daughter of ousting him as president while the daughter claimed that the exclusion of her father from the board was for better governance...

 

 
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